Avon Versus Revlon - A Tale of Two ERP Systems: SAP and Microsoft Dynamics AX

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Wall Street Journal reported that Avon pulled the plug on a $125Million SAP project after a Canadian pilot prompted sales reps to quit in frustration.

Avon began using the new order management software system in Canada in the second quarter. The SAP based system was so burdensome and disruptive to Avon representatives' daily routine that they left in meaningful numbers.  "In light of the potential risk of further disruption," Avon decided to halt the software's rollout to other countries, according to a filing with regulators Wednesday.  The company expects to write down between $100 million to $125 million of the cost of the software because it won't be put to use in the rest of the world.

Interestingly, Avon’s competitor – Revlon chose Microsoft Dynamics AX which in stark contrast is a success story! Revlon runs 50 different business entities and is collapsing 21 separate ERP systems into one.

Microsoft Dynamics AX is being used at Revlon to unite customers, unite business and IT, unite their people and act as one unified organization. David Giambruno, Senior VP and CIO of Revlon stated that there is a “no customization rule” within Revlon. So Microsoft Dynamics AX has been implemented with no customization. Revlon processes an average of 14,000 transactions in a second according to Anya Ciecierski, ERP Software Blog Editor. The base implementation and the first company took a year to go live. However the second country went live in 14 days and the third country in less than a day!

Why such a big difference in these two implementations? Why did Avon fail so miserably with SAP and Revlon succeed so spectacularly with Microsoft Dynamics AX. As Steve Rosenbush, Deputy editor at Wall Street Journal pointed out the failed implementation reflects the rise in importance of usability. Microsoft Dynamics AX is modern, intuitive, easy to use, flexible and agile as evidenced in the role center below. You can have the best system implemented but if users will not use it due to poor usability you will have failure.

Accounts Payable Coordinator Role Center

Microsoft Dynamics AX presents high usability ERP making it easy and intuitive for users to work with. The picture above is for an Accounts Payable Coordinator Role Center. Business Intelligence is not limited to just executives but available to operational users.

In addition Microsoft Dynamics AX is powerfully evidenced by the fact that a company the size of Revlon could implement it with no customizations. There is deep capability for enterprise financials, supply chain management, inventory, warehousing, retail, merchandising, MRP, procurement, vendor management, customer management, HR and Payroll in Microsoft Dynamics AX.

If you’re looking at a new ERP system please email us at [email protected]

Sandeep Walia is the CEO of Ignify. Ignify is a technology provider of CRM, eCommerce and ERP, and Point of Sale software solutions to organizations. Ignify has won the worldwide Microsoft Partner of the Year Award in 2013, 2012 and 2011. Ignify has been included as the fastest growing business in North America for 7 years in a row by Deloitte, Inc Magazine and Entrepreneur Magazine from 2007 to 2013.

1 thought on “Avon Versus Revlon - A Tale of Two ERP Systems: SAP and Microsoft Dynamics AX”

  1. This post is not correct, Revlon has dumped AX and will continue using SAP after his merge with The Colomer Group. This to the fact that nothing has been really implemented form AX in Revlon.

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